Europe Stocks Little Changed as Investors Weigh Earnings

July 23 (Bloomberg) -- European stocks were little changed,
as investors considered earnings from companies including Akzo
Nobel NV and GlaxoSmithKline Plc, while a measure of consumer
confidence unexpectedly declined.

Akzo Nobel rose 3.9 percent after reporting better-than-expected second-quarter profit. Outotec Oyj surged the most in
more than two years amid reports that Weir Group Plc may be
interested in buying the mining-equipment maker. GlaxoSmithKline
dropped 4.7 percent after posting second-quarter earnings that
missed analyst estimates. Deutsche Bank AG fell after the Wall
Street Journal said that bank overseers faulted some of the
firm’s U.S. businesses last year.

The Stoxx 600 added 0.1 percent to 342.86 at the close of
trading, paring earlier gains of as much as 0.4 percent. The
equity gauge advanced 1.3 percent yesterday, rebounding from
three days of losses, as companies from Actelion Ltd. to ARM
Holdings Plc predicted improved financial results.

“You’ve had some very good earnings released so far,”
said Peter Garnry, head of equity strategy at Saxo Bank A/S in
Hellerup, Denmark. “The focus has shifted quickly to economic
data from Europe and the U.S. It’s been mixed but still slightly
to the upside. When we look across the market, it seems calm and
the macro picture is still supporting equities.”

Data this month showed euro-area retail sales increased in
May from a year earlier, while car registrations climbed in
June. In the U.S., a report showed the number of Americans
filing applications for unemployment benefits fell in the week
ended July 12.

Confidence Falls

Still, shares pared gains after a report showed euro-area
consumer confidence unexpectedly fell in July. An index of
household confidence in the 18-nation euro zone decreased to
minus 8.4 from minus 7.5 in June, the European Commission in
Brussels said in a preliminary release. That fell short of the
median forecast of minus 7.5 in a Bloomberg News survey.

The European Union is weighing limiting Russia’s access to
capital markets. Two planes carrying bodies from flight MH17
left eastern Ukraine today for the Netherlands. The U.S. has
indicated it believes Russia supplied the missile that downed
the Malaysia Airlines jet last week, killing all 298 people on
board.

Russia’s Ambassador to Malaysia, Lyudmila Vorobyeva, told
reporters in Kuala Lumpur that her country played no role in the
attack and Ukrainian separatists don’t have the required long-range anti-aircraft weapons.

Outotec surged 7.5 percent to 8.21 euros. Weir may consider
buying the Finnish company after it failed in a bid for mine-equipment supplier Metso Oyj earlier this year, according to
newspapers including the Daily Mail, which said Weir could offer
12 euros a share.

Outotec said in a statement that it would evaluate any
takeover proposal thoroughly. It has not been approached
regarding any takeover or combination, it also said.

Espirito Santo

Banco Espirito Santo SA soared 14 percent to 47.8 euro
cents. The lender, which has slumped since disclosing accounting
irregularities at an affiliated company, rose the most in a week
after Goldman Sachs Group Inc. and D.E. Shaw & Co. bought its
shares.

Telenor ASA added 2.5 percent to 148.10 kroner. The Nordic
region’s largest phone company forecast this year’s profit
margin to improve as it reported second-quarter earnings that
topped analysts’ estimates.

Banco Comercial Portugues SA rallied 8.8 percent to 11.3
euro cents. The lender said late yesterday that its capital
increase was fully subscribed, with demand at about 126 percent
of the rights offering.

GlaxoSmithKline dropped 4.7 percent to 1,481.5 pence. The
U.K.’s biggest drugmaker posted second-quarter earnings that
missed analyst estimates as sales of its respiratory drugs in
the U.S. remained sluggish. The company also cut its forecast
for the year.

Deutsche Bank

Deutsche Bank lost 0.7 percent to 26.48 euros, paring
losses of as much as 2.8 percent. The Wall Street Journal said
that bank overseers faulted some of the German lender’s U.S.
businesses last year for “inaccurate and unreliable” financial
reports. A Federal Reserve Bank of New York review of the
company’s U.S. operations also found they suffered from
inadequate oversight and auditing, as well as weak technology,
the newspaper said, citing documents it reviewed.

STMicroelectronics NV fell 5.8 percent to 6.56 euros.
Europe’s largest semiconductor maker reported an 8.9 percent
decline in second-quarter revenue to $1.86 billion, even as it
posted its first profit in 11 quarters.

Corio NV retreated 2.2 percent to 36.27 euros. UBS AG cut
its rating on the Dutch property investor to sell from neutral,
saying that the performance of its core portfolio has been under
pressure and lagging peers.